Yum! Brands shares jump after second quarter earnings report
Report shows better-than-expected profits and improved financial outlook
Yum! Brands posted second quarter results on Wednesday that were better than originally expected, rallying its shares despite declining revenue on a year-over-year basis.
Yum! Brands Inc.
$136.46
08:15 14/11/24
The owners of KFC, Pizza Hut and Taco Bell are the world's largest restaurant group, and they posted reported revenue of $3.01bn during the second quarter, which rose by 3% compared to last year, but fell short of analysts' $3.09bn expectations.
Net income for the quarter surged an impressive 44% to $339 million, a figure that resulted in earnings of 81 cents per share.
CEO of the group Greg Creed released a statement on behalf of the Louisville, Kentucky based firm on Wednesday.
“Challenging industry conditions in the U.S. contributed to soft sales results. However, our three brand divisions in the aggregate delivered core operating profit growth largely in-line with our expectations and remain on track to deliver against their full-year core operating profit growth targets,” Creed said.
Despite the soft sales results, he remained adamant that Yum would improve its performance in the second half of the year.
“We’re confident in our plans to drive second-half sales improvement led by a continued focus on innovation, value and our core products.”